On Friday, the British pound collapsed by an impressive 200 pips. This morning, the price tested the target range of 1.2816/47, which it had slightly missed on Friday. The day opened with a gap that had already been closed.

Most likely, the correction from Thursday's 370-pip high is complete, and the price may soon break above the 1.3184–1.3208 target range. The target is 1.3311 — the low from September 25 of last year.

However, the picture isn't as optimistic on the four-hour chart. The price is currently trading below the balance, with MACD indicator lines, and the Marlin oscillator shows only a weak attempt to reverse while still in bearish territory.

If the price breaks below the lower boundary of the support range at 1.2816, the decline may continue toward the target level of 1.2714 (the peak from January 26).

A confirmed intention to reverse and head upward will come with a breakout above the MACD line around 1.2955.